Linde plc (NASDAQ:LIN)

The income statement reveals a generally positive trend in financial performance over the five-year period. Sales experienced moderate growth, with fluctuations observed in 2023 before resuming an upward trajectory. Gross margin demonstrated consistent improvement, indicating enhanced profitability from core operations. However, operating expenses also increased, partially offsetting the gains in gross margin.

Revenue Growth

Sales increased from US$30.793 billion in 2021 to US$33.986 billion in 2025, representing a cumulative growth of approximately 10.4%. The growth rate was strongest between 2021 and 2022, slowing in 2023 before accelerating again in 2024 and 2025. This suggests potential market dynamics or company-specific initiatives impacting sales performance.

Profitability Analysis

Gross margin increased steadily from US$13.250 billion in 2021 to US$16.597 billion in 2025. This improvement suggests effective cost management related to cost of sales or favorable pricing strategies. Operating profit exhibited a significant increase, rising from US$4.984 billion to US$8.923 billion over the period, demonstrating improved operational efficiency despite rising operating expenses. Net income attributable to Linde plc followed a similar pattern, growing from US$3.826 billion to US$6.898 billion.

Expense Management

Selling, general and administrative expenses increased consistently throughout the period, from US$3.189 billion to US$3.433 billion. While increasing, the rate of increase was less than the growth in sales, contributing to the improved gross margin. Depreciation and amortization expenses decreased from US$4.635 billion in 2021 to US$3.763 billion in 2025, potentially due to asset optimization or changes in depreciation methods. A notable increase in cost reduction program and other charges was observed in 2022, followed by a return to lower levels in subsequent years. Other income (expenses), net, experienced significant volatility, moving from a loss of US$26 million to a gain of US$185 million in 2024 before reverting to a loss of US$58 million in 2025.

Financial Expenses

Interest expense increased substantially from US$117 million in 2021 to US$464 million in 2025, likely reflecting increased borrowing or changes in interest rates. Interest income also increased, but not at the same rate as interest expense, resulting in a net increase in interest expense. Net pension and OPEB benefit exhibited a relatively stable contribution throughout the period.

Non-Recurring Items

Asset divestiture gains (losses), net, fluctuated, with a significant gain in 2024 and 2025. Insurance recoveries also contributed positively, particularly in 2024. Purchase accounting impacts, Linde AG merger, became a noticeable expense in 2023 and increased in 2025. Other, net gains (losses) were volatile, impacting other income (expenses), net.

Overall, the financial performance demonstrates a positive trend in revenue and profitability. While expenses increased, the growth in sales and improvements in gross margin outpaced these increases, leading to substantial gains in operating profit and net income. The impact of non-recurring items and fluctuations in financial expenses warrant continued monitoring.